THE CREDIT INFORMATION COMPANIES (REGULATION) ACT, 2005 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

REGISTRATION OF CREDIT INFORMATION COMPANIES 

3.  Prohibition to commence or carry on business of credit information. 
4.  Application for registration. 
5.  Grant of certificate of registration. 
6.  Power of Reserve Bank to cancel certificate of registration. 
7.  Appeal against order of Reserve Bank. 
8.  Requirement as to minimum capital. 

CHAPTER III 

MANAGEMENT OF CREDIT INFORMATION COMPANIES 

9.  Management of credit information company. 
10.  Power of Reserve Bank to determine policy. 
11.  Power of Reserve Bank to give directions. 
12.  Inspection of credit information company, credit institution and specified user. 

13.  Powers and duties of auditors. 

CHAPTER IV 

AUDITORS 

CHAPTER V 

FUNCTIONS OF CREDIT INFORMATION COMPANIES 

14.  Functions of a credit information company. 
15.  Credit institution to be member of a credit information company. 
16.  Failure to become a member of a credit information company. 
17.  Collection and furnishing of credit information. 
18.  Settlement of dispute. 

INFORMATION PRIVACY PRINCIPLES AND FURNISHING OF CREDIT INFORMATION 

CHAPTER VI 

19.  Accuracy and security of credit information. 
20.  Privacy principles. 
21.  Alteration of credit information files and credit reports. 

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SECTIONS 

22.  Unauthorised access to credit information. 

CHAPTER VII 

OFFENCES AND PENALTIES 

23.  Offences and penalties. 
24.  Cognizance of offences. 
25.  Power of Reserve Bank to impose penalty. 
26.  Application of fines. 

CHAPTER VIII 

MISCELLANEOUS 

27.  Power of Reserve Bank to specify maximum amount of fees. 
28.  Disclosure of information before any court or tribunal or authority. 
29.  Obligations as to fidelity and secrecy. 
30.  Protection of action taken in good faith. 
31.  Bar of jurisdiction. 
32.  Power of Reserve Bank to exempt in certain cases. 
33.  Application of other laws not barred. 
33A. Powers of Reserve Bank not to apply to International Financial Services Centre. 
34.  Amendment of certain enactments. 
35.  Removal of difficulties. 
36.  Power to make rules. 
37.  Power of Reserve Bank to make regulations 

THE SCHEDULE. 

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THE CREDIT INFORMATION COMPANIES (REGULATION) ACT, 2005 

ACT NO. 30 OF 2005 

An  Act  to  provide  for  regulation  of  credit  information  companies  and  to  facilitate  efficient 

distribution of credit and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:— 

[23rd June, 2005.] 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Credit  Information 

Companies (Regulation) Act, 2005. 

(2) It extends to the whole of India. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint: 

Provided that different dates may be appointed for different provisions of this Act, and any reference 
in any such provision to the commencement of this Act shall be construed as a reference to the coming 
into force of that provision. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “board” means the Board of directors of a credit information company; 

(b)  “borrower”  means  any  person  who  has  been  granted  loan  or  any  other  credit  facility  by  a 

credit institution and includes a client of a credit institution; 

(c) “client” includes— 

(i)  a  guarantor  or  a  person  who  proposes  to  give  guarantee  or  security  for  a  borrower  of  a 

credit institution; or 

(ii) a person— 

(A) who has obtained or seeks to obtain financial assistance from a credit institution, by 
way  of  loans,  advances,  hire  purchase,  leasing  facility,  letter  of  credit,  guarantee  facility, 
venture capital assistance or by way of credit cards or in any other form or manner; 

(B) who has raised or seeks to raise money by issue of security as defined in clause (h) of 
section  2  of  the  Securities  Contracts  (Regulation)  Act,  1956  (42  of  1956),  or  by  issue  of 
commercial paper, depository receipt or any other instrument; 

(C) whose financial standing has been assessed or is proposed to be assessed by a credit 
institution  or  any  other  person  or  institution  as  may,  by  notification,  be  directed  by  the 
Reserve Bank; 

(d) “credit information” means any information relating to— 

(i) the amounts and the nature of loans or advances, amounts outstanding under credit cards 

and other credit facilities granted or to be granted, by a credit institution to any borrower; 

(ii)  the  nature  of  security  taken  or  proposed  to  be  taken  by  a  credit  institution  from  any 

borrower for credit facilities granted or proposed to be granted to him; 

(iii) the guarantee furnished or any other non-fund based facility granted or proposed to be 

granted by a credit institution for any of its borrowers; 

(iv) the credit worthiness of any borrower of a credit institution; 

1. 14th December, 2006,  vide notification No. S.O. 2098(E), dated 14th December, 2006,  see  Gazette of India, Extraordinary, 

Part II, sec. 3(ii). 

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(v)  any  other  matter  which  the  Reserve  Bank  may,  consider  necessary  for  inclusion  in  the 
credit information to be collected and maintained by credit information companies, and, specify, 
by notification, in this behalf; 

(e) “credit information company” means a company formed and registered under the Companies 
Act, 1956 (1 of 1956) and which has been granted a certificate of registration under sub-section (2) of 
section 5; 

(f) “credit institution” means a banking company and includes— 

(i) a corresponding new bank, the State Bank of India, a subsidiary bank, a co-operative bank, 

the National Bank and regional rural bank; 

(ii)  a  non-banking  financial  company  as  defined  under  clause  (f)  of  section  45-I  of  the 

Reserve Bank of India Act, 1934 (2 of 1934); 

(iii)  a  public  financial  institution  referred  to  in  section  4A  of  the  Companies  Act,                      

1956 (1 of 1956); 

(iv)  the  financial  corporation  established  by  a  State  under  section  3  of  the  State  Financial 

Corporation Act, 1951 (63 of 1951); 

(v)  the  housing  finance  institution  referred  to  in  clause  (d)  of  section  2  of  the  National 

Housing Bank Act, 1987 (53 of 1987); 

(vi)  the  companies  engaged  in  the  business  of  credit  cards  and  other  similar  cards  and 

companies dealing with distribution of credit in any other manner; 

(vii)  any  other  institution  which  the  Reserve  Bank  may  specify,  from  time  to  time,  for  the 

purposes of this clause; 

(g)  “credit  scoring”  means  a  system  which  enables  a  credit  institution  to  assess  the  credit 
worthiness  and  capacity  of  a  borrower  to  repay  his  loan  and  advances  and  discharge  his  other 
obligations in respect of credit facility availed or to be availed by him; 

(h) “notification” means a notification published in the Official Gazette of India; 

(i) “prescribed” means prescribed by rules made under this Act; 

(j) “regulations” means regulations made by the Reserve Bank under this Act; 

(k) “Reserve Bank” means the Reserve Bank of India constituted under section 3 of the Reserve 

Bank of India Act, 1934 (2 of 1934); 

(l)  “specified  user”  means  any  credit  institution,  credit  information  company  being  a  member 
under sub-section (3) of section 15, and includes such other person or institution as may be specified 
by  regulations  made,  from  time  to  time,  by  the  Reserve  Bank  for  the  purpose  of  obtaining  credit 
information from a credit information company; 

(m)  words  and  expressions  used  herein  and  not  defined  in  this  Act  but  defined  in  the  Reserve 
Bank  of  India  Act,  1934  (2  of  1934)  or  the  Banking  Regulation  Act,  1949  (10  of  1949)  or  the 
Companies  Act,  1956  (1  of  1956)  shall  have  the  meanings  respectively  assigned  to  them  in  those 
Acts. 

CHAPTER II 

REGISTRATION OF CREDIT INFORMATION COMPANIES 

3.  Prohibition  to  commence  or  carry  on  business  of  credit  information.—Save  as  otherwise 
provided in this Act, no company shall commence or carry on the business of credit information without 
obtaining a certificate of registration from the Reserve Bank under this Act. 

4.  Application  for  registration.—(1)  Every  company  which  intends  to  commence  the  business  of 
credit information shall make an application for registration to the Reserve Bank in such form and manner 
as may be specified by regulations. 

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(2)  Every  credit  information  company,  in  existence  on  the  commencement  of  this  Act,  before  the 
expiry of six months from such commencement, shall apply in writing to the Reserve Bank for obtaining 
a certificate of registration under this Act: 

Provided that in the case of a credit information company in existence on the commencement of this 
Act, nothing in section 3 shall be deemed to prohibit such credit information company from carrying on 
the business of a credit information company, until it is granted a certificate of registration or is by notice 
in writing informed by the Reserve Bank that a certificate of registration cannot be granted to it. 

5. Grant of certificate of registration.—(1) The Reserve Bank may, for the purpose of considering 
the  application  of  a  company  for  grant  of  a  certificate  of  registration  to  commence  or  carry  on  the 
business  of  credit  information,  require  to  be  satisfied,  by  an  inspection  of  records  or  books  of  such 
company or otherwise that the following conditions are fulfilled, namely:— 

(a) that the applicant company has minimum capital structure referred to in section 8; 

(b)  that the  general  character  of the  management  or  the  proposed  management  of  the applicant 
company shall not be prejudicial to the interest of its specified users, clients or borrowers, or other 
credit information companies; 

(c) that any other condition, the fulfilment of which in the opinion of the Reserve Bank, shall be 
necessary to ensure that the commencement or carrying on of the business of credit information by 
the applicant company shall not be detrimental or prejudicial to the public interest or banking policy 
or credit system or its specified users or clients or borrowers or other credit information companies or 
others who would provide credit information to the credit information companies. 

(2) The Reserve Bank may, after being satisfied that the conditions as  referred to in sub-section (1) 
are  fulfilled,  grant  a  certificate  of  registration  to  the  applicant  company  to  commence  or  carry  on  the 
business of credit information, subject to such conditions which it may consider fit to impose and if the 
company fails to fulfil any of such conditions or any of the provisions of this Act, the application of the 
company shall be rejected: 

Provided that no application shall be rejected unless the applicant has been given an opportunity of 

being heard. 

(3) The Reserve Bank may, having regard to the available business of credit information, the potential 
and  scope for  expansion  of  existing  credit information  companies  and  other relevant  factors,  determine 
the total number of the credit information companies which may be granted the certificates of registration 
for carrying on the business of credit information: 

Provided  that  the  total  number  of  such  credit  information  companies  so  determined  may,  on  being 
satisfied by the Reserve Bank, that there is change in available business of credit information, potential 
and  scope  for  expansion  of  existing  credit  information  companies  and  other  relevant  factors  relating 
thereto, be reviewed by the Reserve Bank. 

6. Power of Reserve Bank to cancel certificate of registration.—(1) The Reserve Bank may cancel 
a certificate of registration granted to a credit information company under sub-section (2) of section 5 if 
such company,— 

(i) ceases to carry on the business of credit information; or 

(ii) has failed to comply with any of the conditions subject to which the certificate of registration 

has been granted to it; or 

(iii)  at  any  time  fails  to  fulfil  any  of  the  conditions  referred  to  in  sub-clauses  (a)  to  (c)  of                  

sub-section (1) or sub-section (2) of section 5; or 

(iv) fails— 

(a)  to  comply  with  the  provisions  of  any  law  for  the  time  being  in  force  or  any  direction 

issued by the Reserve Bank under the provisions of this Act; or 

(b) to submit or offer for inspection its books of account and other relevant documents when 

so demanded by the officers, persons or agency referred to in sub-section (1) of section 12. 

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(2) Before cancelling the certificate of registration granted to a credit information company under this 
section on the ground that the company has failed to comply with the conditions specified in clauses (a) to 
(c) of sub-section (1) or sub-section (2) of section 5 or the provisions of any other law for the time being 
in force or directions issued under this Act, the Reserve Bank, shall grant time to such company on such 
terms  as  the  Reserve  Bank  may  deem  appropriate  for  taking  necessary  steps  to  comply  with  such 
directions or provisions or fulfilment of such conditions, within such time: 

Provided  that  if  the  Reserve  Bank  is  of  the  opinion  that  the  delay  in  cancelling  the  certificate  of 
registration of such company shall be prejudicial or detrimental to the public interest or banking policy or 
credit  system  or  borrowers  or  other  credit  information  companies,  the  Reserve  Bank  may  cancel  the 
certificate of registration without granting time as provided in sub-section (2). 

(3)  No  order  of  cancellation  of  certificate  of  registration,  granted  to  a  credit  information  company, 
shall  be  made  by  the  Reserve  Bank  unless  such  company  has  been  given  a  reasonable  opportunity  of 
being heard. 

7.  Appeal  against  order  of  Reserve  Bank.—(1)  A  credit  information  company  aggrieved  by  the 
order of rejection of an application for grant of certificate of registration under section 5 or cancellation of 
certificate of registration under section 6, may prefer an appeal to the Central Government or any other 
authority or tribunal which may be designated by rules made by the Central Government, within a period 
of  thirty  days  from  the  date  on  which  such  order  of  rejection  or  cancellation,  as  the  case  may  be,  is 
communicated to the credit information company. 

(2) The decision of the Central Government or the authority or tribunal referred to in sub-section (1) 
where an appeal has been preferred to it under sub-section (1), or of these Reserve Bank where no such 
appeal has been preferred, shall be final: 

Provided that before making any order of rejection of an appeal, the applicant company or the credit 

information company, as the case may be, shall be given a reasonable opportunity of being heard. 

8.  Requirement  as  to  minimum  capital.—(1)  The  authorised  capital  of  every  credit  information 

company shall be a minimum of thirty crores: 

Provided  that  the  Reserve  Bank  may,  by  notification,  increase  the  minimum  amount  of  authorised 

capital to any amount not exceeding fifty crores. 

(2) The issued capital of every credit information company shall not be less than twenty crores: 

Provided that the Reserve Bank  may, by notification, increase the issued capital to any  amount not 

exceeding the minimum amount of authorised capital as referred to in sub-section (1). 

(3) The minimum paid up capital of every credit information company at any time shall not be less 

than seventy-five per cent. of the issued capital. 

CHAPTER III 

MANAGEMENT OF CREDIT INFORMATION COMPANIES 

9. Management of credit information company.—(1) Notwithstanding anything contained in any 
law for the time being in force, or in any contract to the contrary, every credit information company in 
existence on the commencement of this Act, or which comes into existence thereafter, shall have one of 
its directors, who may be appointed on whole-time or on a part-time basis as chairperson of its board, and 
where  he  is  appointed  on  whole-time  basis  as  chairperson  of  its  board,  he  shall  be  entrusted  with  the 
management of the whole of the affairs of the credit information company: 

Provided  that  the  chairperson  of  the  board  of  the  credit  information  company  shall  exercise  his 

powers subject to the superintendence, control and directions of the board. 

(2) Where a chairperson is appointed on a part-time basis, the management of whole of the affairs of 
the  credit  information  company  shall  be  entrusted  to  a  managing  director  or,  a  whole-time  director  by 
whatever  name  called,  who  shall  exercise  his  powers  subject  to  the  superintendence,  control  and 
directions of the board. 

(3)  In  addition  to  the  chairperson  or  managing  director  or  whole-time  director,  by  whatever  name 
called, the board of directors shall consist of not less than fifty per cent. directors who shall be persons 

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having special knowledge in, or practical experience of, the matters relating to public administration, law, 
banking, finance, accountancy, management or information technology. 

(4) In discharging its functions, the board shall act on business principles and shall have due regard to 

the interest of its specified users, credit institutions or the clients or borrowers of credit institutions. 

(5) Where the Reserve Bank is satisfied that it is in the public interest or in the interest of banking 
policy  or  credit  system  of  the  country,  or  for  preventing  the  affairs  of  any  credit  information  company 
being managed in a manner detrimental to the interest of banking policy or credit institutions or borrowers 
or clients or for securing the proper management of any credit information company, it is necessary so to 
do,  the  Reserve  Bank  may,  for  reasons  to  be  recorded  in  writing,  by  order  published  in  the  Official 
Gazette,  supersede  the  board  of  such  company,  for  such  period  not  exceeding  six  months,  as  may  be 
specified in the order and which may be extended from time to time, so, however, that the total period 
shall not exceed twelve months: 

Provided that before making any such order, the Reserve Bank shall give a reasonable opportunity to 
the board of such credit information company to make representation against the proposed supersession 
and shall consider the representation, if any, of the board. 

(6) The Reserve Bank may, on supersession of the board of a credit information company under sub-
section (5), appoint an Administrator for such period and on such salary and other terms and conditions as 
it may determine. 

(7) The Reserve Bank may issue such directions to the Administrator as it may deem appropriate and 

the Administrator shall be bound to follow such directions. 

(8)  Upon  making  of  the  order  under  sub-section  (5),  superseding  the  board  of  a  credit  information 

company— 

(a)  the  chairperson,  managing  director  and  other  directors  of  such  credit  information  company 

shall, as from the date of supersession, vacate their offices as such; 

(b) all the powers, functions and duties which may, by or under the provisions of the Companies 
Act,  1956  (1  of  1956)  or  this  Act  or  any  other  law  for  the  time  being  in  force,  be  exercised  or 
discharged,  by  or  on  behalf  of  the  board  of  such  credit  information  company,  or  by  a  resolution 
passed  in  general  meeting  of  that  company,  shall,  until  the  reconstitution  of  its  board  under                    
sub-section  (10),  be  exercised and discharged  by  the Administrator  appointed  by  the  Reserve  Bank 
under sub-section (6): 

Provided  that  the  powers  exercised  by  the  Administrator  shall  be  valid  notwithstanding  that  such 
powers are exercisable by a resolution passed in the general meeting of such credit information company. 

(9) The salary and allowances payable to the Administrator and staff assisting the Administrator shall 

be borne by the credit information company. 

(10)  On  and  before  the  expiration  of  two  months  before  expiry  of  the  period  of  supersession 
mentioned in the order of the Reserve Bank issued under sub-section (5), the Administrator of the credit 
information  company,  shall  call  a  general  meeting  of  the  credit  information  company  to  elect  new 
directors  and  reconstitute  its  board  and  any  person  who  had  vacated  his  office  under  clause  (a)  of        
sub-section (8), shall not be deemed to be disqualified for re-appointment. 

(11) Notwithstanding anything contained in any law for the time being in force or in any contract or 
the memorandum or articles of association, of the credit information company, on the removal of a person 
from office under this section, that person shall not be entitled to claim any compensation for the loss or 
termination of office. 

10.  Power  of  Reserve  Bank  to  determine  policy.—Where  the  Reserve  Bank  is  satisfied  that  it  is 
necessary or expedient in the public interest or in the interest of specified users or in the interest of credit 
information companies or credit institutions or clients or borrowers so to do, it may determine the policy 
in  relation  to  functioning  of  credit  information  companies  or  credit  institutions  or  specified  users 
generally or in particular and when the policy has been so determined all credit information companies, 
credit  institutions  and  specified  users,  as  the  case  may  be,  shall  be  bound  to  follow  the  policy  as  so 
determined. 

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11. Power of Reserve Bank to give directions.—(1) Where the Reserve Bank is satisfied that,— 

(a) in the public interest; or 

(b) in the interest of credit institutions; or 

(c) in the interest of specified users; or 

(d) in the interest of banking policy; or 

(e)  to  prevent  the  affairs  of  any  credit  information  company  being  conducted  in  a  manner 
detrimental to the interests of its specified users or in a manner prejudicial to the interests of credit 
institutions or borrowers or clients; or 

(f) to secure the proper management of credit information companies generally, 

it is necessary to issue directions to credit information companies or credit institutions or specified users 
generally or to any credit information company or credit institution or specified user in particular, it may, 
from  time  to  time,  issue  such  directions  as  it  deems  fit,  and  such  credit  information  companies,  credit 
institutions and specified users or credit information company, credit institution, and specified user, as the 
case may be, shall be bound to comply with such directions. 

(2) The Reserve Bank may, on representation made to it or on its own motion, modify or cancel any 
direction issued under sub-section (1), and the Reserve Bank, in so modifying or cancelling any direction, 
may impose such conditions as it thinks fit, subject to which the modification or cancellation shall have 
effect. 

(3) The Reserve Bank may, at any time, if it is satisfied that in the public interest or in the interest of a 
credit information company or its members, it is necessary so to do, by order in writing and on such terms 
and conditions as may be specified therein,— 

(a) require such credit information company to call a meeting of its directors for the purpose of 

considering any matter relating to or arising out of the affairs of the credit information company; 

(b) depute one or more of its officers to watch the proceedings at any meeting of the board of the 
credit information company or of any committee or of any other body constituted by it and require the 
credit  information  company  to  give  an  opportunity  to  the  officers  so  deputed  to  be  heard  at  such 
meetings and also require such officers to send a report of such proceedings to the Reserve Bank; 

(c) require the board of the credit information company or of any committee or any other body 
constituted by it to give in writing to any officer deputed by the Reserve Bank in this behalf at his 
usual  address  all  notices  of,  and  other  communications  relating  to,  any  meeting  of  the  board, 
committee or other body constituted by it; 

(d)  appoint  one  or  more  of  its  officers to  observe  the  manner  in  which the  affairs  of the  credit 

information company or of its offices or branches are being conducted and make a report thereon; 

(e) require the credit information company to make, within such time as may be specified in the 

order, such changes in the management as the Reserve Bank may consider necessary. 

(4) The Reserve Bank  may, at any time, direct any credit information company to furnish it within 
such  time  as  may  be  specified  by  the  Reserve  Bank,  such  statements  and  information  relating  to  the 
business  or  affairs  of  the  credit  information  company  as  the  Reserve  Bank  may  consider  necessary  or 
expedient to obtain for the purpose of this Act. 

12.    Inspection    of    credit    information    company,    credit    institution    and    specified                  
user.—(1)  Notwithstanding  anything  to  the  contrary  contained  in  section  235  of  the  Companies  Act,                  
1956  (1  of  1956),  the  Reserve  Bank,  at  any  time,  may  and  on  being  directed  so  to  do  by  the  Central 
Government shall, cause an inspection to be made, by one or more of its officers or through such other 
persons  or  agency  as  the  Reserve  Bank  may  determine,  of  any  credit  information  company  or  credit 
institution or specified user and their books and accounts; and the Reserve Bank shall supply to the credit 
information  company  or  credit institution  or  specified  user, as the  case  may  be,  a  copy  of its  report  on 
such inspection. 

(2)  It  shall  be  the  duty  of  every  director  or  other  officer  or  employee  of  the  credit  information 
company, credit institution and specified user to produce to any officer or person or agency,   as the case  

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may be, making an inspection under sub-section (1) all such books, accounts and other documents in his 
custody or power and to furnish him with any statement and information relating to the affairs of such 
credit information company, credit institution and specified user, as the said officer or person or agency 
may require of him within such time as the said officer or person or agency may specify. 

(3)  Any  officer  of  the  Reserve  Bank  or  person  or  an  agency  making  an  inspection  under                 

sub-section (1) may examine on oath any director or other officer or employee of the credit information 
company, credit institution and specified user, in relation to their business, and may administer an oath 
accordingly. 

(4) The expenses of, or incidental to, the inspection under sub-section (1) by any person or an agency 
referred  to  in  sub-section  (1)  shall  be  borne  by  the  concerned  credit  information  company  or  credit 
institution or specified user, as the case may be. 

CHAPTER IV 

AUDITORS 

13.  Powers  and  duties  of  auditors.—(1)  It  shall  be  the  duty  of  an  auditor  of  a  credit  information 
company  to  inquire  whether  or  not  the  credit  information  company  has  furnished  to  the  Reserve  Bank 
such statements, information or particulars relating to its business as are required to be furnished under 
this  Act  and  the  auditor  shall,  except  where  he  is  satisfied  on  such  inquiry  that  the  credit  information 
company has furnished such a statement , information or particulars, make a report to the Reserve Bank in 
this regard. 

(2) The Reserve Bank may, on being satisfied that it is necessary so to do, in the public interest or in 
the interest of credit system, issue directions in particular or in general with respect to audit of the credit 
information company and submission of the report to the Reserve Bank. 

(3) Where the Reserve Bank is of the opinion that it is necessary so to do in the public interest or in 
the interest of the credit information company or its members, or in the interest of credit system or credit 
institution or its borrower or client so to do, it may, at any time, by an order, direct that a special audit of 
the accounts of the credit information company in relation to any such transaction or class of transactions 
or for such period or periods, as may be mentioned in the order, shall be conducted and the Reserve Bank 
may by such order or by a separate order either appoint an auditor or auditors or direct the auditor of the 
credit information company himself to conduct such special audit and the auditor shall comply with such 
directions and make a report of such audit to the Reserve Bank and forward a copy thereof to the credit 
information company. 

(4)  The  remuneration  of  the  auditors  as  may  be  fixed  by  the  Reserve  Bank,  having  regard  to  the 
nature and volume of work involved in the audit and the expenses of, or incidental to, the audit, shall be 
borne by the credit information company so audited. 

CHAPTER V 

FUNCTIONS OF CREDIT INFORMATION COMPANIES 

14. Functions of a credit information company.—(1) A credit information company may engage in 

any one or more of the following forms of business, namely:— 

(a)  to  collect,  process  and  collate  information  on  trade,  credit  and  financial  standing  of  the 

borrowers of the credit institution which is a member of the credit information company; 

(b) to provide credit information to its specified users or to the specified users of any other credit 

information company or to any other credit information company being its member; 

(c)  to  provide  credit  scoring  to  its  specified  users  or  specified  users  of  any  other  credit 

information company or to other credit information companies being its members; 

(d) to undertake research project; 

(e) to undertake any other form of business which the Reserve Bank may, specify by regulations 

as a form of business in which it is lawful for a credit information company to engage. 

(2) No credit information company shall engage in any form of business other than those referred to 

in sub-section (1). 

9 

 
(3) Any credit information company for the purposes of carrying on the business of credit information 

may— 

(a)  register  credit  institutions  and  other  credit  information  companies,  at  their  option  as  its 
member, subject to such terms and conditions as may be pre-determined and disclosed by such credit 
information company; 

(b)  charge  such  reasonable  amount  of  fees,  as  it  may  deem  appropriate  not  exceeding  the 
maximum fee, as may be specified under section 27, for furnishing credit information to a specified 
user; 

(c)  generally  to  do  all  such  other  acts  and  perform  such  other  functions  as  are  necessary  to 
facilitate proper conduct of its affairs, business and functions in accordance with the provisions of this 
Act. 

15.  Credit  Institution  to  be  member  of  a  credit  information  company.—(1)  Every  credit 
institution in existence on the  commencement of this Act, before the expiry of three months from such 
commencement  or  within such  extended  period,  as the  Reserve  Bank  may  allow  on  its  application  and 
subject  to  being  satisfied  about  the  reason  for  extension,  shall  become  member  of  at  least  one  credit 
information company. 

(2) Every credit institution which comes into existence after the commencement of this Act, before 
the expiry of three months from its coming into existence, or within such extended period, as the Reserve 
Bank  may  allow  on  its  application  and  subject  to  being  satisfied  about  the  reason  for  extension,  shall 
become member of at least one credit information company. 

(3) A credit information company may, at its option, become member of another credit information 

company. 

(4)  No  credit  information  company  shall  refuse  to  register  a  credit  institution  or  another  credit 
information  company  as  its  member  without  providing  reasonable  opportunity  of  being  heard  to  such 
credit  institution  or  credit  information  company,  whose  application  it  proposes  to  reject  and  recording 
reasons for such rejection and a copy of such order of rejection shall be forwarded to the Reserve Bank. 

(5)  A  credit  institution  or  credit  information  company  aggrieved  by  the  order  of  rejection  of  its 
application for its registration as a member of a credit information company under sub-section (4) may 
prefer an appeal to the Reserve Bank, within a period of thirty days from the date on which such order of 
rejection was communicated to it: 

Provided that the Reserve Bank may, if it is satisfied that the appellant was prevented by sufficient 
cause  from  filing  the  appeal  within  the  said  period,  allow  it  to  be  filed  within  a  further  period  not 
exceeding thirty days. 

(6) On receipt of an appeal under sub-section (5), the  Reserve Bank, after giving the appellant and 

other concerned parties, an opportunity of being heard, pass such order as it deems fit. 

(7) The decision of the Reserve Bank where an appeal has been preferred to it under sub-section (5) 
shall be final and the order of the credit information company under sub-section (4) shall be final after the 
expiry of the said period of thirty days where no appeal has been preferred under that sub-section to the 
Reserve Bank. 

(8)  Every  specified  user  shall  be  entitled  to  obtain  credit  information  for  its  use  from  the  credit 

information company of which such specified user is a member. 

16.  Failure  to  become  a  member  of  a  credit  information  company.—(1)  Where  a  credit 

institution— 

(a) abstains from becoming a member of at least one credit information company; or 

(b) at any time is not a member of any credit information company, 

the Reserve Bank suo moto or on a complaint from a credit information company may, direct such credit 
institution  to  take  necessary  steps  within  such  time,  as  it  may  specify  to  become  a  member  of  a  credit 
information company. 

10 

 
(2)  In  case  a  credit  institution  fails  to  comply  with  the  directions  of  the  Reserve  Bank  under           

sub-section (1), to become member of at least one credit information company, the Reserve Bank may, 
without prejudice to the provisions of this Act, intimate such failure to any other authority for taking such 
action as it may deem fit. 

17.  Collection  and  furnishing  of  credit  information.—(1)  A  credit  information  company  or  any 
person  authorised  in  that  behalf  by  the  company  may,  by  notice  in  writing,  in  such  form,  as  may  be 
specified by regulations made by the Reserve Bank or as near thereto, require its members being credit 
institution or credit information company, to furnish such credit information as it may deem necessary in 
accordance with the provisions of this Act. 

(2)  Every  credit  institution  which  is  member  of  the  credit  information  company  and  every  credit 
information company which is a member of other credit information company shall, on receipt of notice 
under  sub-section  (1),  provide  credit  information  to  the  credit  information  company  of  which  it  is  a 
member, within such period as may be specified in the notice. 

(3)  Every  credit  information  company  shall  provide  for  such  purpose,  as  may  be  specified  by 
regulations,  the  credit  information  received  under  sub-section  (2),  to  its  specified  user  on  receipt  of 
request from him in accordance with the provisions of this Act and directions issued thereunder by the 
Reserve Bank from time to time in this behalf. 

(4) No credit information received under this Act,— 

(a) by the credit information company, shall be disclosed to any person other than its specified 

user; or 

(b) by the specified user, shall be disclosed to any other person; 

(c) by the credit information company or specified user, shall be disclosed for any other purpose 

than as permitted or required by any other law for the time being in force. 

18. Settlement of dispute.—(1) Notwithstanding anything contained in any law for the time being in 
force,  if  any  dispute  arises  amongst,  credit  information  companies,  credit  institutions,  borrowers  and 
clients on matters relating to business of credit information and for which no remedy has been provided 
under this Act, such disputes shall be settled by conciliation or arbitration as provided in the Arbitration 
and  Conciliation  Act,  1996  (26  of  1996),  as  if  the  parties  to  the  dispute  have  consented  in  writing  for 
determination  of  such  dispute  by  conciliation  or  arbitration  and  provisions  of  that  Act  shall  apply 
accordingly. 

(2) Where a dispute has been referred to arbitration under sub-section (1), the same shall be settled or 

decided,— 

(a) by the arbitrator to be appointed by the Reserve Bank; 

(b) within three months of making a reference by the parties to the dispute: 

Provided that the arbitrator may, after recording the reasons therefor, extend the said period up to a 

maximum period of six months: 

Provided further that, in an appropriate case or cases, the Reserve Bank may, if it considers necessary 
to  do so  (reasons  to  be recorded in  writing),  direct  the  parties to the  dispute  to appoint  an  arbitrator in 
accordance with the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996), for settlement 
of their dispute in accordance with the provisions of that Act. 

(3) Save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act, 
1996 (26 of 1996) shall apply to all arbitration under this Act as if the proceedings for arbitration were 
referred for settlement or decision under the provisions of the Arbitration and Conciliation Act, 1996. 

CHAPTER VI 

INFORMATION PRIVACY PRINCIPLES AND FURNISHING OF CREDIT INFORMATION 

19.  Accuracy  and  security  of  credit  information.—A  credit  information  company  or  credit 
institution or specified user, as the case may be, in possession or control of credit information, shall take 
such  steps  (including  security  safeguards)  as  may  be  prescribed,  to  ensure  that  the  data  relating  to  the 

11 

 
credit  information  maintained  by  them  is  accurate,  complete,  duly  protected  against  any  loss  or 
unauthorised access or use or unauthorised disclosure thereof. 

20.  Privacy  principles.—Every  credit  information  company,  credit  institution  and  specified  user, 
shall  adopt  the  following  privacy  principles  in  relation  to  collection,  processing,  collating,  recording, 
preservation, secrecy, sharing and usage of credit information, namely:— 

(a) the principles— 

(i) which may be followed by every credit institution for collection of information from its 
borrowers  and  clients  and  by  every  credit  information  company,  for  collection  of  information 
from  its  member  credit  institutions  or  credit  information  companies,  for  processing,  recording, 
protecting  the  data  relating  to  credit  information  furnished  by,  or  obtained  from,  their  member 
credit institutions or credit information companies, as the case may be, and sharing of such data 
with specified users; 

(ii) which may be adopted by every specified user for processing, recording, preserving and 
protecting the data relating to credit information furnished, or received, as the case may be, by it; 

(iii)  which  may  be  adopted  by  every  credit  information  company  for  allowing  access  to 
records containing credit information of borrowers and clients and alteration of  such records in 
case of need to do so; 

(b)  the  purpose  for  which  the  credit  information  may  be  used,  restriction  on  such  use  and 

disclosure thereof; 

(c)  the  extent  of  obligation  to  check  accuracy  of  credit  information  before  furnishing  of  such 
information to credit information companies or credit institutions or specified users, as the case may 
be; 

(d)  preservation  of  credit  information  maintained  by  every  credit  information  company,  credit 
institution, and  specified  user  as  the  case  may  be  (including  the  period  for  which  such  information 
may  be  maintained,  manner  of  deletion  of  such  information  and  maintenance  of  records  of  credit 
information); 

(e)  networking  of  credit  information  companies,  credit  institutions  and  specified  users  through 

electronic mode; 

(f) any other principles and procedures relating to credit information which the Reserve Bank may 

consider necessary and appropriate and may be specified by regulations. 

21.  Alteration  of  credit  information  files  and  credit  reports.—(1)  Any  person,  who  applies  for 
grant or sanction of credit facility, from any credit institution, may request to such institution to furnish 
him a copy of the credit information obtained by such institution from the credit information company. 

(2)  Every  credit  institution  shall,  on  receipt  of  request  under  sub-section  (1),  furnish  to  the  person 
referred to in that sub-section a copy of the credit information subject to payment of such charges, as may 
be specified by regulations, by the Reserve Bank in this regard. 

(3) If a credit information company or specified user or credit institution in possession or control of 
the credit information, has not updated the information maintained by it, a borrower or client may request 
all or any of them to update the information; whether by making an appropriate correction, or addition or 
otherwise,  and  on  such  request  the  credit  information  company  or  the  specified  user  or  the  credit 
institution, as the case may be, shall take appropriate steps to update the credit information within thirty 
days after being requested to do so: 

Provided  that  the  credit  information  company  and  the  specified  user  shall  make  the  correction, 
deletion  or  addition  in  the  credit  information  only  after  such  correction,  deletion  or  addition  has  been 
certified as correct by the concerned credit institution: 

Provided further that no such correction, deletion or addition shall be made in the credit information if 
any dispute relating to such correction, deletion or addition is pending before any arbitrator or tribunal or 
court  and  in  cases  where  such  dispute  is  pending,  the  entries  in  the  books  of  the  concerned  credit 
institution shall be taken into account for the purpose of credit information. 

12 

 
22.  Unauthorised  access  to  credit  information.—(1)  No  person  shall  have  access  to  credit 
information  in  the  possession  or  control  of  a  credit  information  company  or  a  credit  institution  or  a 
specified user unless the access is authorised by this Act or any other law for the time being in force or 
directed  to  do  so  by  any  court  or  tribunal  and  any  such  access  to  credit  information  without  such 
authorisation or direction shall be considered as an unauthorised access to credit information. 

(2) Any person who obtains unauthorised access to credit information as referred to in sub-section (1) 
shall be punishable with fine which may extend to one lakh rupees in respect of each offence and if he 
continues to have such unauthorised access, with further fine which may extend to ten thousand rupees 
for every day on which the default continues and such unauthorised credit information shall not be taken 
into account for any purpose. 

CHAPTER VII 

OFFENCES AND PENALTIES 

23.  Offences  and  penalties.—(1) Whoever, in any  return  or other document  or in  any  information 
required  or  furnished  by,  or  under,  or  for  the  purposes  of,  any  provision  of  this  Act,  wilfully  makes  a 
statement  which  is  false  in  any  material  particular,  knowing  it  to  be  false,  or  wilfully  omits  to  make  a 
material statement, shall be punishable with imprisonment for a term which may extend to one year and 
shall also be liable to fine. 

(2)  Every  credit  information  company  or  a  credit  institution  or  any  specified  user,  wilfully, 
performing any act or engaging in any practice, in breach of any of the principles referred to in section 20, 
shall be punishable with fine not exceeding one crore rupees. 

(3) Any credit information company or credit institution or specified user wilfully providing to any 
other credit information company or credit institution or specified user or borrower or client, as the case 
may  be,  credit  information  which  is  false in  any  material  particular,  knowing  it  to  be  false,  or  wilfully 
omits to make a material statement, shall be punishable with fine which may extend to one crore rupees. 

(4) Any person who contravenes any provision of this Act or of any rule or order made thereunder, or 
obstructs the lawful exercise of any power conferred by or under this Act, or makes default in complying 
with any requirement of this Act or of any rule or order made or direction issued thereunder, shall, if no 
specific provision is made under this Act for punishment of such contravention, obstruction or default, be 
punishable  with  fine  which  may  extend  to  one  lakh  rupees  and  where  a  contravention  or  default  is  a 
continuing one, with a further fine which may extend to five thousand rupees for every day during which 
the contravention or default continues. 

(5) Where a contravention or default has been committed by a credit information company or credit 
institution or specified user, as the case may be, every person who, at the time the contravention or default 
was  committed,  was  in  charge  of,  and  was  responsible  to  the  credit  information  company  or  credit 
institution  or  specified  user  for  the  conduct  of  its  business,  shall  be  deemed  to  be  guilty  of  the 
contravention or default and shall be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment provided in this Act if he proves that the contravention or default was committed without his 
knowledge or that he exercised all due diligence to prevent the contravention or default. 

(6) Notwithstanding anything contained in sub-section (5), where a contravention or default has been 
committed by a credit information company or credit institution or specified user, as the case may be, and 
it is proved that the same was committed with the consent or connivance of, or is attributable to any gross 
negligence  on  the  part  of  its  chairperson,  managing  director,  any  other  director,  manager,  secretary  or 
other  officer  of  the  credit  information  company  or  the  credit  institution,  such  chairperson,  managing 
director, any other director, manager, secretary or other officer shall also be deemed to be guilty of that 
contravention or default and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a) “company” means any body corporate and includes a firm or other association of individual, 

and 

(b) “director”, in relation to a firm, means a partner in the firm. 

13 

 
24.  Cognizance  of  offences.—(1)  No  court  shall  take  cognizance  of  any  offence  committed  by  a 
member  of  a  credit  information  company  and  punishable  under  section  23  except  upon  a  complaint  in 
writing made by an officer of the credit information company generally or specially authorised in writing 
in this behalf by the credit information company or if so directed by the Reserve Bank so to do and no 
court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or any court 
superior thereto shall try any such offence. 

Explanation.—For the purposes of this sub-section, “member of a credit information company” shall 

mean a member referred to in section 15. 

(2)  No  court  shall  take  cognizance  of  any  offence  committed  by  a  credit  information  company 
punishable under section 23 except upon a complaint in writing made by an officer of the Reserve Bank 
generally or specially authorised in writing in this behalf by the Reserve Bank and no court other than that 
of a Metropolitan Magistrate or a Judicial Magistrate of the first class or any court superior thereto shall 
try any such offence. 

25. Power of Reserve Bank to impose penalty.—(1) Notwithstanding anything contained in section 
23, if a contravention or default of the nature referred to in sub-section (2) of section 22 or sub-section (2) 
or sub-section (3) or sub-section (4) of section 23, as the case may be, is made by a credit information 
company or a credit institution then, the Reserve Bank may impose on such credit information company 
or credit institution— 

(i) where the contravention is of the nature referred to in sub-section (2) of section 22, a penalty 

not exceeding one lakh rupees; 

(ii)  where  the  contravention  is  of  the  nature  referred to  in  sub-section  (2)  or  sub-section  (3)  of 

section 23, a penalty not exceeding one crore rupees; 

(iii) where the contravention is of the nature referred to in sub-section (4) of section 23, a penalty 
not exceeding one lakh rupees and where such contravention or default is continuing one, a further 
penalty  which  may  extend  to  five  thousand  rupees  for  every  day,  after  the  first,  during  which  the 
contravention or default continues. 

(2)  For  the  purpose  of  adjudging  the  penalty  under  sub-section  (1),  the  Reserve  Bank  shall  serve 
notice on credit information company or credit institution or specified user, as the case may be, requiring 
it to show cause as to why the amount mentioned in the notice should not be imposed  as penalty and a 
reasonable opportunity of being heard shall also be given to such credit information company or credit 
institution or specified user, as the case may be. 

(3) No complaint shall be filed against credit information company or credit institution or specified 
user, as the case may be, in any court of law in respect of any contravention or default in respect of which 
any penalty has been imposed by the Reserve Bank under this section. 

(4)  Any  penalty  imposed  by  the  Reserve  Bank  under  this  Act  shall  be  payable  within  a  period  of 
fourteen days from the date on which notice issued by the Reserve Bank demanding payment of the sum 
is served on the credit information company or credit institution or specified user, as the case may be, and 
in the event of failure of such credit information company or credit institution or specified user to pay the 
sum within such period, may be levied on a direction made by the principal civil court having jurisdiction 
in the area where the registered office of the credit information company or credit institution or specified 
user, being a company, is situated and in case of credit institution incorporated outside India, where its 
principal place of business in India is situated: 

Provided that such direction under this  sub-section shall be made only upon an application made in 

this behalf to the court by the Reserve Bank. 

(5)  The  court  which  makes  a  direction  under  sub-section  (4)  shall  issue  a  certificate  mentioning 
therein the sum payable by a credit information company or credit institution or specified user, as the case 
may be, and every such certificate shall be enforceable in the same manner as if it were a decree made by 
the court in a civil suit. 

(6)  Where  any  complaint has  been filed  against  credit  information  company  or  credit  institution  or 
specified user, as the case may be, in any court in respect of the contravention or default of the nature 
referred  to  in  sub-section  (2)  of  section  22  or  sub-section  (2)  or  sub-section  (3)  or  sub-section  (4)  of 

14 

 
section 23, then, no proceedings for the imposition of any penalty on the credit information company or 
credit institution or specified user shall be taken under this section. 

26. Application of fines.—A court imposing any fine under this Act may direct that the whole or any 
part thereof shall be applied in or towards payment of the costs of the proceedings, or for such purposes as 
may be directed by the court. 

CHAPTER VIII 

MISCELLANEOUS 

27.  Power  of  Reserve  Bank  to  specify  maximum  amount  of  fees.—The  Reserve  Bank  may, 
specify,  by  regulations  the  maximum  amount  of  fees  leviable  under  sub-section  (3)  of  section  14  for 
providing information to the specified users and for admissions of credit institutions or credit information 
companies as a member of a credit information company. 

28.  Disclosure  of  information  before  any  court  or  tribunal  or  authority.—No  chairperson, 
director, member, auditor, adviser, officer or other employee or agent employed in the business of a credit 
information company or in the business of a specified user shall, except for the purposes of this Act or 
when  required  to  do  so  by  any  other  law  in  force  or  court  or  tribunal  or  authority,  disclose  any 
information to any person. 

29.  Obligations  as  to  fidelity  and  secrecy.—(1)  Every  credit  information  company  shall  observe, 
except  as  otherwise  required  by  law,  the  practices  and  usages  customary  among  credit  information 
companies  and  it  shall  not  divulge  any  information  relating  to,  or  to  the  affairs  of,  its  members  or 
specified users. 

(2)  Every  chairperson,  director,  member,  auditor,  adviser,  officer  or  other  employee  of  a  credit 
information company shall, before entering upon his duties, make a declaration of fidelity and secrecy in 
the form, as may be prescribed in this regard. 

Explanation.—For  the  purposes  of  this  section  and  section  30,  the  terms  “practices  and  usages 
customary”  means  such  practices  and  usages  which,  are  generally  followed  by  credit  information 
companies or may develop in due course in relation to their functions, in pursuance of the provisions of 
this  Act,  rules  and  regulations  made  and  directions  issued  thereunder  from  time  to  time  in  pursuance 
thereof. 

30. Protection of action taken in good faith.—(1) No suit or other legal proceedings or prosecution 
shall  lie  against  the  Reserve  Bank  or  the  Central  Government  or  credit  information  company  or  credit 
institution, or their chairperson, director, member, auditor, adviser, officer or other employee, or agent or 
any person authorised by the Reserve Bank or the Central Government or credit information company or 
credit institution to discharge any function under this Act, for any loss or damage caused or as is likely to 
be caused by anything which is in good faith done or intended to be done, in pursuance of this Act or any 
other law for the time being in force. 

(2) Nothing contained in sub-section (1) shall affect the right of any person to claim damages against 
a credit information company, a credit institution or their chairperson, director, member, auditor, adviser, 
officer or other employee or agents, as the case may be, in respect of loss caused to him on account of any 
such disclosure made by anyone of them and which is unauthorised or fraudulent or contrary to provisions 
of this Act, or practices or usages customary among them. 

31. Bar of jurisdiction.—No court or authority shall have, or be entitled to exercise, any jurisdiction, 
powers or authority, except the Supreme Court and a High Court exercising jurisdiction under articles 32, 
226 and 227 of the Constitution, in relation to the matters referred to in sections 4, 5, 6, 7 and 18. 

32. Power of Reserve Bank to exempt in certain cases.—(1) The Central Government may, on the 
recommendation of the Reserve Bank, by notification in the Official Gazette, direct that any or all of the 
provisions of this Act shall not apply to any credit information company or a credit institution, as the case 
may be, either generally or for such period and subject to such exceptions or modifications, as may be 
mentioned in that notification. 

(2)  A  copy  of  every  notification  proposed  to  be  issued  under  sub-section  (1),  shall  be  laid  in  draft 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 

15 

 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately  following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in 
disapproving  the  issue  of  the  notification  or  both  Houses  agree  in  making  any  modification  in  the 
notification,  the  notification  shall  not  be  issued  or,  as  the  case  may  be,  shall  be  issued  only  in  such 
modified form as may be agreed upon by both the Houses. 

33. Application of other laws not barred.—The provisions of this Act shall be in addition to, and 

not,  save  as  provided  under  this  Act,  in  derogation  of,  the  provisions  of  the  Companies  Act,                    
1956 (1 of 1956) or any other law for the time being in force. 

1[33A.  Powers  of  Reserve  Bank  not  to  apply  to  International  Financial  Services  Centre.—
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable 
by the Reserve Bank under this Act, — 

(a) shall not extend to an International Financial Services Centre set up under sub-section (1) of 

section 18 of the Special Economic Zones Act, 2005 (28 of 2005); 

(b)  shall  be  exercisable  by  the  International  Financial  Services  Centres  Authority  established 
under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, 

in so far as regulation of financial products, financial services and financial institutions that are permitted 
in the International Financial Services Centres are concerned.] 

34.  Amendment  of  certain  enactments.—The  enactments  mentioned  in  the  Schedule  to  this  Act 

shall be amended in the manner specified therein. 

35. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act, 
the  Central  Government  may,  by  order  published  in  the  Official  Gazette,  make  such  provisions  not 
inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the 
difficulty: 

Provided that no order shall be made under this section after the expiry of a period of two years from 

the commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

36.  Power  to  make  rules.—(1)  The  Central  Government  may,  after  consultation  with  the  Reserve 

Bank, by notification in the Official Gazette, make rules to carry out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  powers,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the authority or tribunal which may be designated under sub-section (1) of section 7; 

(b) the steps to be taken by every credit information company or credit institution and specified 
user for ensuring accuracy, completeness of data and protection of data from any loss or unauthorised 
access or use or disclosure under section 19; 

(c) the form in which a declaration of fidelity and secrecy shall be made under sub-section (2) of 

section 29; 

(d) any other matter which is required to be, or may be, prescribed. 

(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it 
is made, before each House of Parliament, while it is in session, for a total period of thirty days which 
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the 
session  immediately  following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in 
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that rule. 

1. Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020). 

16 

 
                                                           
37.  Power  of  Reserve  Bank  to  make  regulations.—(1)  The  Reserve  Bank  may  make  regulations 
consistent with the provisions of this Act and the rules made thereunder to carry out the purposes of this 
Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  powers,  such  regulations 

may provide for all or any of the following matters, namely:— 

(a)  the  persons  or  institutions  which  may  be  specified  as  specified  users  under  clause  (l)  of 

section 2; 

(b) the form in which application may be made under sub-section (1) of section 4 and the manner 

of filing such application under that sub-section; 

(c)  any  other  form  of  business  in  which  a  credit  information  company  may  engage  under              

clause (e) of sub-section (1) of section 14; 

(d) the form of notice for collection and furnishing of information procedure relating thereto and 

purposes for which credit information may be provided under sub-sections (1) and (2) of section 17; 

(e)  the  principles  and  procedures  relating  to  credit  information  which  may  be  specified  under 

clause (f) of section 20; 

(f) the amount which may be required to be paid for obtaining copy of credit information under 

sub-section (2) of section 21; 

(g) the maximum amount of charges payable under section 27. 

(3) Every regulation, as soon as may be after it is made by the Reserve Bank, shall be forwarded to 
the Central Government and that Government shall cause a copy of the same to be laid before each House 
of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be  comprised  in  one 
session  or  in  two  or  more  successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in  the  regulation,  or  both  Houses  agree  that  the  regulation  should  not  be  made,  the  regulation  shall, 
thereafter, have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that regulation. 

17 

 
 
 
THE SCHEDULE 

(See section 34) 

AMENDMENTS TO CERTAIN ENACTMENTS 

PART I 

THE RESERVE BANK OF INDIA ACT, 1934 

(2 OF 1934) 

Section 45E, sub-section (2), after clause (c), insert— 

“(d)  the  disclosures  of  any  credit  information  under  the  Credit  Information  Companies 

(Regulation) Act, 2005.”. 

PART II 

THE BANKING REGULATION ACT, 1949 

(10 OF 1949) 

1. Section 19, after sub-section (3), insert— 

“(4) Save as provided in clause (c) of sub-section (1), a banking company may form a subsidiary 
company  to  carry  on  the  business  of  credit  information  in  accordance  with  the  Credit  Information 
Companies (Regulation) Act, 2005.”. 

2.  Section  28,  for  “publish  any  information  obtained  by  them  under  this  Act  in  such  consolidated 

form as they think fit”, substitute— 

“publish— 

(a) any information obtained by them under this Act in such consolidated form as they think 

fit; 

(b) in such manner as they may consider proper, any credit information disclosed under the 

Credit Information Companies (Regulation) Act, 2005.”. 

PART III 

THE STATE FINANCIAL CORPORATION ACT, 1951 

(63 OF 1951) 

Section 40, after sub-section (3), insert— 

“(4)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

PART IV 

THE STATE BANK OF INDIA ACT, 1955 

(23 OF 1955) 

Section 44, after sub-section (2), insert— 

“(3)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

18 

 
 
 
 
 
 
 
PART V 

THE STATE BANK OF INDIA (SUBSIDIARY BANKS) ACT, 1959 

(38 OF 1959) 

Section 52, after sub-section (2), insert— 

“(3)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

THE DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION ACT, 1961 

PART VI 

Section 39, after sub-section (2), insert— 

(47 OF 1961) 

“(3)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

PART VII 

THE STATE AGRICULTURAL CREDIT CORPORATIONS ACT, 1968 

(60 OF 1968) 

Section 40, insert— 

“Provided  that  nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed 

under the Credit Information Companies (Regulation) Act, 2005.”. 

THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970 

PART VIII 

Section 13, after sub-section (3), insert— 

(5 OF 1970) 

“(4)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980 

PART IX 

Section 13, after sub-section (3), insert— 

(40 OF 1980) 

“(4)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

PART X 

THE EXPORT-IMPORT BANK OF INDIA ACT, 1981 

(28 OF 1981) 

Section 30, after sub-section (3), insert— 

“(4)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

19 

 
 
 
 
 
THE NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT ACT, 1981 

PART XI 

Section 51, after sub-section (2), insert— 

(61 OF 1981) 

“(3)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

THE PUBLIC FINANCIAL INSTITUTIONS (OBLIGATION AS TO FIDELITY AND SECRECY) ACT, 1983 

PART XII 

Section 3, after sub-section (2), insert— 

(48 OF 1983) 

“(3)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

PART XIII 

THE NATIONAL HOUSING BANK ACT, 1987 

(53 OF 1987) 

Section 44, after sub-section (2), insert— 

“(3) Nothing contained in this section shall apply to the credit information disclosed under the Credit 

Information Companies (Regulation) Act, 2005.”. 

PART XIV 

THE REGIONAL RURAL BANKS ACT, 1976 

(21 OF 1976) 

Section 25, after sub-section (2), insert— 

“(3)  Nothing  contained  in  this  section  shall  apply  to  the  credit  information  disclosed  under  the 

Credit Information Companies (Regulation) Act, 2005.”. 

————— 

20 

 
 
 
 
 
 
